Accounting is one of the most important responsibilities for a company to deal with. Without it, there’s no way to tell how a company is doing financially. Among the various options of accounting, cloud accounting software is a widely-recognized option that many firms are starting to use.
Starting back in the late 90s, cloud accounting was first used as a web-hosted accounting software by NetSuite. Once Microsoft saw its potential, they quickly got into the cloud accounting game themselves. It wasn’t until 2009 that cloud accounting started to make its mark on the world. Over the years, cloud accounting has seen a dramatic increase in both its revenue and in its popularity. Its success showed in 2016 when the International Data Association made a claim that cloud accounting would be expected to be used by about 50% of small to medium employers globally.
When it’s all said and done, it’s clear that cloud accounting software is certainly becoming a widely used option, but what exactly is cloud-based accounting?
What is Cloud Accounting?
Cloud accounting can be linked to traditional accounting. When talking about the two, they’ll mostly be discussed as software (cloud accounting software and traditional accounting software). Both softwares are similar in what their functions are, but there is a major difference between the two.
Traditional accounting software and its data can only be accessed through a computer with a specific program. That data can only be seen through that computer or if it’s moved through a different method such as a USB drive. In cloud accounting, the data isn’t limited to one computer and is instead stored in a secure area on the Internet. This means that someone can reach this data through any device at any time as long as there’s Internet.
Why Choose Cloud Accounting?
Cloud accounting didn’t gain fame out of nowhere. It’s become what it is due to innovation and convenience. Since all data is stored online, it can be reached from anywhere at any time by anyone with authorization. It can also be cost-effective as payments are usually monthly subscriptions.
The most important advantage is that the information is more secure than traditional accounting software. Since data is stored in one place and is not bounced around, this instantly keeps the data from being accessed by anyone not authorized to do so. There’s also no need to keep any backups on a different hard drive because the data is simply stored online.
Why Choose Xero?
Xero is one of the fastest growing cloud accounting software companies in the world. Starting in 2006 in New Zealand, the company has grown exponentially since catering to small businesses around the world. What separates Xero from its competitors is its security and low prices.
Anyone would assume that paying extra would mean some more security and more features, but Xero ignores this simple idea of marketing and instead focuses more on its customers, understanding that security shouldn’t be a benefit but rather a requirement. Xero keeps its low costs while making sure it keeps its security up along with up-to-date features so that all small businesses have the same opportunities.
Not only does this allow new companies to have a better chance of surviving, but this in turn also helps Xero grow in popularity. Xero works great companies such as Basis 365, who also share an interest in helping small scaled companies grow. Not only that, but both Xero and Basis 365 also cater to larger companies looking to transition from the traditional accounting software to cloud accounting. With a strong foothold in cloud accounting, Xero has the potential to become a world-leading cloud accounting software for the foreseeable future.